Sarah Mirando  |  May 10, 2012

Category: Legal News

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Judge Reverses Honda Small Claims Judgment Over Hybrid MPG

By Kimberly Mirando

 

HondaA California judge has reversed the $9,867 small-claims judgment awarded to a California woman who dropped out of a class action lawsuit settlement to pursue her own claim that Honda overstated the fuel mileage of its Civic Hybrid.  

Heather Peters sued Honda earlier this year, saying her 2006 Civic Hybrid did not deliver the 50 mpg promised and barely got 30 mpg after its battery deteriorated. Peters argued that Honda knew her car would not get the 50 mpg as advertised, and opted out of a class action lawsuit settlement that paid some 200,000 car owners $100 or $200 each, plus a $1,500 credit toward a new vehicle.

Peters gained national attention for taking on Honda in small claims court and was initially awarded $9,867 by a court commissioner.

Superior Court Judge Dudley W. Gray overturned that ruling yesterday, saying that Honda’s fuel-economy ratings were in compliance with U.S. EPA requirements and that the ratings are for comparison among vehicles without taking into account factors that can affect mileage at any given moment.

 
“Defendant’s use of advertising slogans such as ‘sipping fuel,’ ‘amazingly little fuel’ and ‘saves plenty of money on fuel’ — the court rules that these are non-actionable sales puffery,” the judge said. “They are not specific promises of anything.”

Judge Gray’s ruling underscores how difficult it is to take on a well-funded behemoth like Honda in small claims court. When news that Peters rejected the class action lawsuit settlement first hit, many consumers jumped ship as well in hopes of winning a larger judgment in small claims court. However, the time, court costs and extreme amount of energy it takes to do this individually often far outweighs the award. Class action attorneys bear the brunt of the workload and costs associated with taking on corporations, which can cost hundreds of thousands, if not millions, of dollars.

Despite losing her legal battle, Peters says she’s still glad that Honda suffered a significant public relations loss from the case.

“Of course I’m disappointed, but I’m still glad that I raised awareness that Honda is no longer the great brand that it used to be,” Peters said in a statement. “They used to go the extra mile in customer service, now the go the extra mile fighting customers in court. I guess the moral of the story is buyer beware — especially of Honda!”

 

 

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Updated May 10th, 2012

 

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